Arbeitspapier
Origins and Resolution of Financial Crises; Lessons from the Current and Northern European Crises
Since July 2007 the world economy has experienced a severe financial crisis originating in the U.S. housing market. The crisis has subsequently spread to the financial sectors in European and Asian economies and led to a severe worldwide recession. The existing literature on financial crises rarely distinguish between factors that create the original strain on the financial sector and factors that explain why these strains lead to system-wide contagion and a possible credit crunch. Most of the literature on financial crises refers to factors that cause an original disruption in the financial system. We argue that a financial crisis with its contagion within the system is caused by failures of legal, regulatory and political institutions.
One policy implication of our view is that the need for various forms of rescues of financial firms in times of crises would be reduced if appropriate institutions could be put in place Lacking appropriate institutions to avoid contagion within the financial system and a potential credit crunch, ad hoc financial crisis management is required. We draw on experiences from the financial crises in the Nordic countries at the end of the 1980s and the beginning of the 1990s. In particular, the Swedish model for crisis resolution, which has received attention during the current crisis, is discussed in order to illustrate the problems policy makers face in a financial crisis without appropriate institutions. Current European Union approaches to the crisis are discussed before turning to policy implications from an emerging market perspective in the current crisis.
- Sprache
-
Englisch
- Erschienen in
-
Series: IFN Working Paper ; No. 796
- Klassifikation
-
Wirtschaft
General Equilibrium and Disequilibrium: Financial Markets
Financial Markets and the Macroeconomy
Central Banks and Their Policies
Current Account Adjustment; Short-term Capital Movements
International Policy Coordination and Transmission
International Institutional Arrangements
International Financial Markets
General Financial Markets: Government Policy and Regulation
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Financial Institutions and Services: Government Policy and Regulation
- Thema
-
Financial Crisis
Institutional Failure
Insolvency Procedures
Contagion
Systemic Effects
Macroeconomic Shock
Financial Crisis Management
Swedish Model
Finanzkrise
Internationaler Finanzmarkt
Bankenkrise
Schock
Institutionelle Infrastruktur
Geldpolitik
Regulierung
Internationale Wirtschaftspolitik
Europa
USA
Nordeuropa
Schweden
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Ostrup, Finn
Oxelheim, Lars
Wihlborg, Clas
- Ereignis
-
Veröffentlichung
- (wer)
-
Research Institute of Industrial Economics (IFN)
- (wo)
-
Stockholm
- (wann)
-
2009
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Ostrup, Finn
- Oxelheim, Lars
- Wihlborg, Clas
- Research Institute of Industrial Economics (IFN)
Entstanden
- 2009
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